Crude has risen sharply in Q3 but gas prices barely moved higher. That means refining profits were significantly squeezed.Does anyone believe that exxon quarterly income drop 10%?
Saluki and ziggy pointed out that the spread between oil and gasoline has narrowed, but what would cause this?
I would expect that the spread would reflect some reasonable profit margin, and pretty much float with the price of the underlying commodity. Of course, the refining process, and reserves play a role here - did something happen there that impacted the spread? Are refineries less constrained than they were before? Higher reserves now? Something else?
-ERD50